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Issues: Whether, in an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, the High Court could reappreciate the merits of the arbitral claim and set aside the award and the order under Section 34.
Analysis: The appellate jurisdiction under Section 37 is narrow and does not permit the High Court to act as a first appellate court over the merits of the dispute. Interference with an arbitral award is confined to the well-recognised grounds under Sections 34 and 37, including conflict with the public policy of India, fundamental policy of Indian law, interest of India, justice or morality, or patent illegality. The High Court, however, entered into the merits of the claim and proceeded on a footing impermissible in a Section 37 appeal. The objection regarding the arbitrator's jurisdiction was also not available to be reopened in the present appeal.
Conclusion: The High Court exceeded its jurisdiction under Section 37 and its judgment setting aside the award and the Section 34 order could not be sustained.